Correlation Between Tenaga Nasional and SSF Home
Can any of the company-specific risk be diversified away by investing in both Tenaga Nasional and SSF Home at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tenaga Nasional and SSF Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaga Nasional Bhd and SSF Home Group, you can compare the effects of market volatilities on Tenaga Nasional and SSF Home and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tenaga Nasional with a short position of SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaga Nasional and SSF Home.
Diversification Opportunities for Tenaga Nasional and SSF Home
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tenaga and SSF is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tenaga Nasional Bhd and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group and Tenaga Nasional is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tenaga Nasional Bhd are associated (or correlated) with SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of Tenaga Nasional i.e., Tenaga Nasional and SSF Home go up and down completely randomly.
Pair Corralation between Tenaga Nasional and SSF Home
If you would invest 34.00 in SSF Home Group on September 3, 2024 and sell it today you would earn a total of 0.00 from holding SSF Home Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaga Nasional Bhd vs. SSF Home Group
Performance |
| Timeline |
| Tenaga Nasional Bhd |
| SSF Home Group |
Tenaga Nasional and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaga Nasional and SSF Home
The main advantage of trading using opposite Tenaga Nasional and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaga Nasional position performs unexpectedly, SSF Home can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SSF Home will offset losses from the drop in SSF Home's long position.| Tenaga Nasional vs. Binasat Communications Bhd | Tenaga Nasional vs. Southern Steel Bhd | Tenaga Nasional vs. Farm Price Holdings | Tenaga Nasional vs. Sports Toto Berhad |
| SSF Home vs. Choo Bee Metal | SSF Home vs. EA Technique M | SSF Home vs. Resintech Bhd | SSF Home vs. Minetech Resources Bhd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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